According to , Google is about to open a software development office in Kirkland (WA) right outside of Seattle and, more importantly, right near Microsoft.

Clearly, this move is intended to steal top talent from the Redmond giant. Especially after recently cutting benefits, Microsoft may have difficulty retaining key people in MS Research and MSN Search.
Amazon, located in Seattle, should also be concerned. Amusing, in some ways, since Amazon just opened an office in Google's backyard. Turnabout is fair play.

Google has had a sales team up in the Seattle area for a while. But Jeff Dean Google is opening a branch office for software engineers here in the Seattle area.